That's what we're currently doing, and I'm waiting to see if anyone abuses it. Work from home as necessary, too...
if they abuse it, let them go. don't punish others because someone you hire will eventually abuse it.
Combined with flex-time, this is amazing. Results-based evaluations ftw.
yep. we've been doing this for five years, as we've grown from 3 people to 20. haven't had an issue yet. work with people you like and trust - everything else will follow smoothly.